P&G Hygiene & Healthcare has declared a huge 23% decline in its turnover to Rs 1,011 m in its 3QFY01. The company has a June ending accounting year. P&G's net profit however, surged nearly 20% during the period.
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The surge in bottomline despite a decline in topline came largely because of a 32% decline in the company's operating expenditure. This led to a surge in operating margins by 940 basis points.
To lend focus to its business, P&G consciously decided to be present only in two products viz. Anti-cold (Vicks) and feminine care (Whisper). Its strategy has revolved around premium positioning of both its product categories. In a sense, the company has been focussing on margins (value) rather than volumes. But competition from products such as Dcold and Smyle has impacted the sales of Vicks cough drops.
On a nine month consolidated basis the company's turnover has declined by 7%. Here also, P&G's bottomline has improved by 24%.
The stock is trading at a P/e multiple of 19.1 times its annualised nine month FY01 earnings.
Procter & Gamble Hygiene and Health Care has announced the first quarter results of the financial year ended June 2017 (1QFY17). The company's sales rose by 12.5%YoY while net profit rose by 50.1% YoY during the quarter.
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